Influencer marketing has developed rapidly recently. Companies and brands of all kinds spend a lot of money promoting products for children, adults, pets and all kinds of craziness, hoping to reach new audiences through social media stories and posts.
It all just seems to come out of nowhere, but it is a growing trend that we are all not only witnessing, but also part of. Every time you like, share or otherwise respond to social content, you are essentially part of the influencer marketing frenzy. And the more followers you have, the more visibility and activity you get.
For the average person, it’s all just casual social networking. For content creators and influencers, it’s just another small statistic they can give to brands and advertisers to ask for more money for new advertising and marketing opportunities.
Yes, we are indeed living in the age of influencer marketing.
What is influencer marketing and where can you find it?
Influencer marketing is exactly what it sounds like. Someone joins a social networking platform(Instagram, Facebook, TikTok ) and starts creating content (be it text, images or video) and starts growing their following. As the number of followers and “influence” grows, the likelihood that brands and advertisers will pay that person to promote, showcase and tell about the product or service increases.
This has been happening in the entertainment and film industries since the very beginning, usually through paid advertising placements. It is also quite similar to the way advertising and TV advertising work. Brands want to choose an influencer for their ads, so they can be shown at the most popular times and to the right audiences. However, with TV audiences declining and social media now giving everyone a platform and the ability to reach millions of users instantly, the influencer marketing business is born and growing faster than ever before.
When it comes to where influencers get the most from ad placements and product sponsorships – fashion, beauty and travel are the most profitable.
Look at any of the latest marketing trends in the cosmetics industry and you will see that e-commerce and online shopping websites are spending a lot of money. Not only that, but also where and how the money is spent. Most of it comes from social media and influencers and users who continue to share and promote these products.
This is further confirmed by the latest news about Kylie Jenner and how she has built a 900 million dollar empire thanks to her extensive social media reach and cosmetics business.
According to Business Insider, “Jenner has made millions from Kylie Cosmetics, TV exposure and product endorsements”, which are mostly part of the influencer marketing process.
This is just one of many examples where influencer marketing is now rapidly changing how the public finds, chooses and buys products online, and how businesses and brands must now adapt to select potential customers and reach new audiences.
How much do influencers really earn?
When it comes to the actual amount of money spent on marketing, we know it is a huge amount, but how much each influencer actually earns is often a guess.
There are many online advertising platforms that allow you to connect with different influencers and also see their ratings, but there are many other factors too. For example, how much space and time an ad is taking up on a given platform, the number of deals closed, the number of private campaigns and, of course, what industry the influencer is in.
Just like websites, companies and blogs, influencers come in many different forms. Some may have a few thousand followers, while others may have millions, on one or more platforms combined.
There are also many resources and case study articles online that help to answer this question too, because there really is no one set amount or answer. Later.com came out with their own material and in one section they quote Shane McCloskey, the sales director of an influencer platform, who allegedly said:
“An influencer with a million followers on Instagram can charge USD 100 per post, while an influencer with 10 000 followers on Instagram can also charge USD 100 for the exact same post on their profile.”
And the article goes on to look at the rates and advertising packages offered by different influencers in different niche markets. One lifestyle influencer said that she, personally, follows the rule of 100 USD per 10 000 followers to calculate her rate.
But with a little research, you’ll also find that prices vary considerably depending on the industry you choose, who offers to place your ad and what kind of content you want to publish.
According to a recent article on Fox News, “the cost of sponsored news can range from $50 to more than $50,000, according to media news site Mic.com”. The article also highlights that Kyl Jenner “can earn more than USD 1 million for every sponsored post shared with her 164 million Instagram followers”, which further confirms our reference to the power of marketing influence in the cosmetics and beauty sector.
For advertisers and brands alike, this means there are plenty of opportunities to move to influencer marketing without having to spend your entire budget on just a few posts. This is best achieved by looking for smaller and more specific influencers, not just celebrities or influencers with millions of followers.
However, from the influencers’ point of view, it is still a quite successful and financially viable business model. The same article points out that nano-influencers, or users with only a few thousand followers, can earn between USD 30 000 and USD 60 000 a year.
How companies and brands can start using influencer marketing.
Whatever your business model or the product or service you offer, there may be an influencer who is willing to showcase your brand to their audience – for a fee, of course!
However, for new companies and brands looking to get off the ground, the question of how best to approach influencers, what to say and how much to pay can be quite confusing. Even after all this is done, you also need to know how to evaluate the success of the investment and whether it is worth continuing or not.
It’s all part of the research and planning process. Social Media Week has a great reference guide that outlines the following five-step process to find the most success in influencer marketing.
- Define your main goal for influencer marketing
- Define a suitable influencer profile
- Finding potential influencers
- Providing remuneration for influencers
- Evaluation of results
Whether you think the idea of expanding your business or brand through influencer marketing is great or unreliable, it’s now one of the most effective ways to attract clicks, views, fans and customers to your brand.
